Markets had been trading in paradise territory since the end of the Israel-Iran conflict, leading to a renewed uptrend in global Equity indices.
The reasons were more than valid: Earnings have been very strong, sentiment relative to tariffs and their outcomes got uplifted (with the pricing in of many US trade deals) and data kept surprising to the upside.
However, there had been some cracks in the past week, with a powerful sell-the-news reactions to Trade Deals, a strong rally in the USD which has left some Participants behind, and the Dow Jones faking out on its all-time highs – a bizarre sign for the backbone of the US Economy.
This, combined with continued all-time highs provided a recipe for a volatile session – All majors are up against the USD (after its ceaseless rally this week) and Equities are down between 1.30% (Dow Jones) to 2.85% for the EuroStoxx.
Pure risk-off session like Markets haven't seen in a while – Gold and Bonds up while everything else is down.
Metals actually offer a decent picture of what can be seen as diversification from other regular asset classes, with most typically traded metals up on the session (they also had a very rough week all around).
Ethereum and Nasdaq are the particularly strong losers of today's session. Next week should be very volatile.
The JPY is easily the largest winner of the day, up 2.30% against the Greenback!
The latter on the other hand got hammered from the weaker US Data. Risk-Currencies also did not perform very well due to the risk-off session.
The Euro notably saw a strong relief rally (up 1.35% vs the USD today).
